Concentric buys ITG for £146 million

Murray hives off non-core interests into new company

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Internet Technology Group, the AIM-listed ISP chaired by PC World founder Jan Murray, has agreed to a £146 million cash and share offer for the company from Californian ISP Concentric Networks. The terms represent, in the tortuous language of Stock Exchange-approved announcement, a premium of 5.2 per cent on the mid-market price of 240.5p at close of business on the last trading day before the offer announcement. More to the point, the offer is 62.1 per cent higher than 16 August, when rumours of ITG's impending takeover hit the streets. And there is opportunity for Murray and co to create even further value for shareholders. As part of the deal, Murray is sponsoring a new company, called Red Wave, which will take on ITG's "non-core" interests. Presumably, this centres around ITG's licensing deal with Wave, the micropayments-on-a-chip company, that maybe, just maybe, could make gazillions. ITG shareholders and warrantholder will have the right to subscribe for shares in Red Wave on a pro rata basis. Murray and his fellow directors have committed their ITGshares, accounting for 26 per cent of the company, to Concentric. Of course, there is always the possibility that other shareholders could vote against the deal. But then Elvis Presley could be found on safe and well on the moon. ® Tune into Cash Register and turn on to our daily Net Finance News